Britons are struggling to be accepted for loans, as new research has revealed a big difference between supply and demand.
Moneysupermarket.com found through analysis of official figures from the British Bankers’ Association that, while monthly lending fell 28 per cent for October, the number of those looking for a loan through the site rose 20 per cent in the same period.
And the cost of personal loans also increased, with the most competitive lenders being institutions such as Tesco and other non-bank firms, which generally only accept those with untainted credit scores.
Head of loans and debt at moneysupermarket.com Tim Moss said: “The financial crisis may have eased but this hasn’t filtered through to the personal loan market yet. We have seen the banks go from choosy to almost locking down completely.”
However, those looking for homeowner loans may be assisted by the number of fixed-rate reductions that are being witnessed in the mortgage market.
Director of communications with John Charcol Drew Wotherspoon observed that these drops could help those requiring the protection that comes with fixed rates.
By Sarah Adie